Michigan Tax

Michigan State Tax

Michigan Income Tax

The Michigan State tax code covers the rules and regulations governing the requirements and processes involved in the filing and payment of state tax in Michigan. The state levies taxes on income, sales of goods, properties, and services.

Income Tax

The State of Michigan has the third lowest maximum marginal tax rate in the US. The state levies a flat rate of 4.35% on the personal gross income of its residents. Individual taxpayers are required to fill up their tax form MI-1041 and file their income tax returns to the Michigan Department of Treasury on or before April 15.

Michigan does not have state corporate income tax. However, corporations and businesses are subject to gross receipts taxes. Michigan collects a flat rate of 6% on corporation gross income.

Michigan Sales Tax

Michigan levies 6% sales tax on purchases of tangible property materials. The state does not impose sales tax on the sale of services, as well as groceries, raw food, prescription drugs, and newspapers and magazines. However, unhealthy food items are not included in this exemption. Michigan likewise collects special service tax on restaurant meals and excise tax on alcohol, gasoline and cigarettes. There is no state sales tax for purchases made online or through mail, except if the seller is from Wisconsin.

There are no surtaxes in the state. Municipalities and cities are not allowed to impose local sales tax.

Michigan Property Tax

Michigan is the 18th state which collects the greatest amount of property tax. The average property tax rate is 1.62% that comprises 3.88% of its residents’ annual income.